Cash flow relief comes from not have to submit the School Tax payments (remittances) to the Province until the end of the year...
The hard part - how are municipalities going to penalize some classes and not others on different due dates. Our system (Vadim) is not set up that way.
Luckily, our Council is already looking at setting up the due date for Sept 30th with penalty of 5% on Oct 1st for all classes. The second due date is Nov 2nd with a 5% penalty on Nov 3rd.
Karen Sharp, Village of Radium Hot Springs
I agree Kelsey, could they make it any more complicated!! Then I receive an email from the Regional District saying we still need to make the August 1st payment to them.
Anyone looking at all classes tax due date of Oct 1?
Yes Lynda, Invermere is doing all classes due September 30th, October 1 would be the penalty date
District of Invermere
Hi Lynda, Radium Hot Springs has followed Invermere's lead... we are doing the Sept 30th due date, Oct 1st penalty at 5%, with the second due date of Nov 2nd and Nov 3 penalty for the remaining 5%... for all classes
HI All... Something I did not find on this thread that I was hoping to find is "Does anybody know if there is any legislation againts different treatment on different classes as far as due dates and penalties go? Say for example, if we want to reduce the penalty or change the deadline for only residential taxes, is this possible or does it need to be the same for all the tax classes?" What are your thoughts on this?
That is a great question. I would take a very close read of Division 10 of the Community Charter.
If we follow some logic we might be able to do some figuring. If a muni has no alternative collection scheme it follows the default collection and penalty scheme set by the province. Now by bylaw a muni can establish an alternative municipal tax collection scheme per CC 235. Further if you look at 235 (3) (e) "set terms, conditions and procedures in relation to payments, which may be different for different classes of owners as established by the bylaw." I read this and it seems like a muni has the authority to apply penalties differently to different classes.
Municipalities are granted the authority to tax different classes at different rates. Should municipalities be granted the authority to apply penalties to difference property classes too? As long as a property owner has the ability to elect into the provincial collection scheme I would think there is a possibility.
Hi Adam, just going to chime in as this has been a topic of great email discussion amongst the CFO's in our region. Some muni's are going to go ahead and have the residential tax due date remain at July 2nd (with varying penalty schemes, regulated by bylaw). Just check with your software provider to see if they can have the penalty calculation apply to different classes or there may be hundreds of penalty adjustments required. I'm also not too sure how those muni's are going to indicate different penalty dates on the tax notice... messaging will have to be a huge component for all of us this year with our tax notices! Good luck :-)
I agree with Adam - I think under CC Section 235 (3)(e) we are permitted to apply different penalties to different classes, as long as your bylaw states it. How do you do that? I would think your software would have to allow you to do that and then allow you to print your tax notices by class because I think you would need different tax notices depending on the penalty? I would not want to be getting into an argument with a taxpayer because the scheme we were asking them to follow was not outlined on the tax notice?
GFOA has put together a GREAT summary of the Provincial announcements. Go to the website or use the following link:
COVID-19 Update on the GFOA website:
In Merritt, we are taking a recommendation to Council to keep the July 2nd deadline (the thought is that the banks will still by by July 2 and anyone that can afford it), and applying a 5% penalty on Oct 1 on all classes. We didn't want to get into different penalties for different classes, and Council was requesting a reduced penalty. I have done a draft of my bylaw indicating the alternate collection scheme.
As it isn't totally clear from the Province, I feel more comfortable doing an alternate collection scheme in my Bylaw and then we are covered for our purposes.
For those that are changing their due dates, how did you do the alternative municipal tax collection scheme, as it requires property owners to "opt in" to the new scheme?
Hi Shirley, it's simply done by Bylaw, no "opting in" to the new scheme, it is whatever Council sets via Bylaw
You don't need the owners to opt into the new scheme, you have to give the owners the ability to opt into the general scheme if you have set an alternate scheme.
Here is a note from Doug Stein from the GFOA Quarterly Forum yesterday regarding tax due dates.
POST-SCRIPT - Based on information recently received from the Province, municipalities cannot have a different penalty date from the tax due date for Classes 1, 2, 3, and 9. The Alternative Tax Scheme will not allow that. You can only do it for the other commercial classes because of special provincial legislative authority. This also means that only Classes 1, 2, 3, and 9 penalty dates can extend beyond September 30. A legal comment is being requested. This may also need clarification.
Did anyone get a legal comment that having a July 2nd due date and penalty at a later date is still allowed?
Kerri's point just came up at a meeting with MAH. Recommendation there was to get a legal opinion on a penalty date that doesn't fall directly after the due date.
We have not yet gotten a legal opinion.